Lloyds to launch robo-advice for clients investing less than £100k

Pedro Gonçalves
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Lloyds to launch robo-advice for clients investing less than £100k

Lloyds plans to launch a mass market robo-advice offering for clients with assets under £100,000 by 2020.

It provides a home for customers who do not have the £100,000 or more to invest that is required to be channeled into Schroders Wealth Management. Lloyds have tagged those clients as mass affluent, while high net worth clients, with more than £1m to invest, will be introduced to Cazenove.

Antonio Lorenzo, Lloyds group director for insurance and wealth, made the announcement during the banking group's 2019 half year results on July 31, said the group was "creating a market leading wealth management proposition" for its customers.

We will do this through three lines of business. Firstly, a group branded mass market offering that we will launch at the end of 2020. Secondly, our Schroders Personal Wealth joint-venture, and thirdly, through providing access to a leading wealth management and investment business, Cazenove Capital, for our high and ultra-high net worth customers"

Lorenzo explained the robo-adviser will be the first of three lines of businesses in this area. The second is Schroders Personal Wealth for clients with more than £100,000 in investable assets or income seeking advice. The joint venture, owned 50.1 per cent by Lloyds and 49.9 per cent by Schroders, launched for private banking customers in June and will be opened to the wider market later in 2019.

The third line is its offering for customers with more than £1m of assets through Cazenove Capital.

"We will do this through three lines of business. Firstly, a group branded mass market offering that we will launch at the end of 2020. Secondly, our Schroders Personal Wealth joint-venture, and thirdly, through providing access to a leading wealth management and investment business, Cazenove Capital, for our high and ultra-high net worth customers," Lorenzo said.

The robo-advice service will be available to Lloyds and Halifax customers and will be part of the group's new initiatives in the online space. The high-street bank announced it will launch an execution-only/robo-advice by the end of 2020.

In launching a robo-advice service, Lloyds has joined a series of other major UK banks. Santander launched one last September, while NatWest has also launched one.

Lorenzo stated Schroders Personal Wealth "is well positioned to meet its ambition of becoming a top three financial planning business by the end of 2023".

He added: "Having established the company in the first of half of 2019, Schroders Personal Wealth will launch to the market later this year, operating a restricted model with a wide product set.

"We believe that a best-in-class product offering, combined with transparent and competitive fees, will be attractive to customers in the growing mass affluent market."

 

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